Ladbrokes slumped into a £43M ($60.3M) loss last year -- its first in 10 years -- after the costs of "shutting shops, boosting its digital business and implementing its proposed merger with Coral," according to Nick Fletcher of the London GUARDIAN. But as it "concentrates on building up its self service betting terminals and digital operations," its U.K. retail business saw revenues rise 2% during the year "but 6.5% in the fourth quarter." Operating profits fell 36% to £80.6M ($113M) after increased marketing spend, product investment and a £50M ($70M) increase in gambling tax. But this figure was "better than expected" and it said the new year had started well partly because "the unpredictability of the football season has thus far favoured bookmakers." Peel Hunt analyst Nick Batram said, "The odds on Ladbrokes beating expectations would have been pretty long back in June last year. However, whilst it is early days there are encouraging signs that under Jim Mullen, the turnaround is (this time) tangible." Davy analysts said, "If management can convince the market that its investment in online opex is driving sustainable active customer growth, then a re-rating of the stock will likely follow" (GUARDIAN, 2/23). The BBC reported the figures "reflect for the first time" a new 15% "point of consumption" tax on gross profits. The government "also increased the levy for in-store fixed odd betting machines" (BBC, 2/23).
